New Zealand-based outdoor apparel retailer Kathmandu is exploring new markers for international expansion following colossal profit and sales growth during FY16.
The retailer's Australian and New Zealand arms contributed to a sales growth of 4% to NZ$425.6 million.
It's also raised its net profit after tax (NPAT) by a whopping 64.2% to NZ$33.5 million.
The retailer has recorded a sales decline during FY16 in the UK following the closure of three stores in the region.
Kathmandu chief executive Xavier Simonet has attributed growth to a revised brand and management strategy.
“The results for FY2016 exceeded expectations.
“Sales growth was achieved at higher gross margins as a result of product newness and careful management of promotional activity.
“Cost efficiency and improved working capital management have also contributed to a successful FY2016.”
Kathmandu's operating expenses have decreased by 3.4% to NZ$8.5 million.
Simonet said that positive growth will see the retailer explore potential markets in FY17.
“Shareholders relied upon our published forecasts of expected growth in earnings in FY2016, and we are pleased to have exceeded those forecasts.
“For FY2017 we have worked hard to minimise the impact of currency on our gross margins through sourcing negotiations, product newness, and continual refinement of our customercentric promotional calendar.
“We remain committed to offering great, innovative, distinctive and sustainable quality products to our customers and providing a seamless shopping experience whether instore or online.
"We will be exploring opportunities for Kathmandu to further expand into international markets in FY2017 and our profitable Australasian business provides the foundation for this initiative.
“Strengthening the distinctiveness of our brand will also open up opportunities to be relevant in international markets as well as on social, digital and online channels.”